Have you claimed your Employment Allowence of up to £2000?
Companies in the UK are to get up to £2,000 off their National Insurance Contributions (NIC) in an attempt to boost job creation, the chancellor has announced. Aimed at small firms, George Osborne said that “one third of all employers” will not have to make any NI payments. He described it as “the largest tax cut in the Budget”. NI payments go towards a number of benefits, including the state pension. The change is being called the Employment Allowance, which the chancellor described as “taking a tax off jobs”. To take advance of the allowance, firms will simply have to inform HM Revenue & Customs, and the Treasury says it will be “delivered through standard payroll software”.
Visit the HM Government website for more details. Employment Allowance
Mr Osborne added: “For the person who’s set up their own business, and is thinking about taking on their first employee – a huge barrier will be removed.” “They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax.” The Federation of Small Businesses welcomed the announcement, saying the cut went “beyond what we were asking for”. “The chancellor has pulled out all the stops with a wide-ranging package of measures to support small business,” FSB national chairman John Walker said. The Employment Allowance will also apply to charities and community sports clubs. John Longworth, director general of the British Chambers of Commerce (BCC), also welcomed the announcement. He said: “The chancellor’s move to help our smallest companies take on staff by cutting their employers’ national insurance bills by £2,000 will give many businesses an important boost of confidence.”